Karur Vysya Bank Ltd

NSE:KARURVYSYA

Earnings Call Transcript 2021-Q2

[Operator]

Ladies and gentlemen, good day, and welcome to the Karur Vysya Bank Q2 FY '21 Earnings Conference Call hosted by Spark Capital Advisors in India Private Limited. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Abhinesh Vijayaraj from Spark Capital Advisors. Thank you, and over to you, sir.

[Abhinesh Vijayaraj, VP of Equity Research & Banking Analyst]

Thank you, Stephen. Good morning to everyone on the call. On behalf of Spark Capital, I welcome you to 2Q FY '21 earnings call of Karur Vysya Bank. We have with us today the management team of KVB, represented by the MD and CEO, Mr. Ramesh Babu; President and COO, Mr. Natarajan; CFO, Mr. Ramesh Murthy; and Company Secretary and Compliance Officer, Mr. Srinivasa Rao. I now request Mr. Ramesh Babu to take us through the highlights of the quarter gone by, after which we will open the floor for questions. Over to you, sir.

[Ramesh Babu Boddu, MD, CEO & Director]

Yes. Thank you, Abhinesh. Thank you. So ladies and gentlemen, a good morning to all of you. So first of all, a big thanks from me and the entire KVB team for joining the call all of you. So our PowerPoint presentation has already been uploaded in the investor's deck and all of you would have seen it also. So before I start, let me introduce our new CFO, Mr. Ramesh Murthy, who will be -- who has just reported today. And incidentally, he was the CRO of the bank for more than 2 years. That's why he knows in and out of the bank. So the comfort and continuity would be continued that way. So Ramesh Murthy's with me here and along with my president. Now coming back to the -- today's discussion. I'll just give you an update on the COVID, what's happening in the activity of the branches. So branches, if we look at it more or less all the branches are functioning, barring local restrictions, if at all, are imposed by the state. Otherwise, all branches started functioning normally. Our business continuity plan, which was there actually is the occasion for us to test and it works so well, and everything is going on as per the business continuity plan. And the staff members as well as the customers also, the adoption has happened for the new normal and everything is going on now. So the transaction levels also, if you look at it, so pre-COVID levels, though the percentage to physical to digital has changed, digital numbers have gone up, so otherwise, the levels have come back to normalcy pre-COVID.So coming back to the business growth. Business growth during the quarter is more or less on the expected lines, because we know it. Progressively, this unlock is happening. So actually, the last year numbers may not come up straight away. But as expected, the numbers are growing. Anyhow, I'll discuss those numbers also with you. The growth momentum when we saw month-on-month is continuing, though at a lower pace compared to normal pace, but month-on-month, the progress is there. So P&L is concerned, all of you would have analyzed, because the weekend we are loaded -- uploaded on Friday itself. So we can also have seen that. That's why I'll keep my narration brief because the figures and presentation is already with you. If you look at the major points for the P&L, so 3 points we can think of. One is, however, cost of funds, cost of deposits has come down to 5.06, one of the lowest amongst other banks, if you look at it, and that has helped us a lot in improving our NIMs as well as to maintain the NIMs. And second thing, the provisioning requirement also, a lot of work has been done by the bank last 2 years for the reduction in the pain, and that has all helped us. And now during this COVID period also, all of our staff members were continuously in touch with the customers. So that way, it helped us to see what's the position of pain. And when actually this moratorium was listed, the recovery follow up, all these things have helped us. So that's why the pain has come down there. and lower provisioning that has helped us. And third thing is the treasury income, though not at the pace what we saw in the month of June. So treasury income, these 3 factors have helped us a lot during this [indiscernible] this year. If you look at the NII, it's consistent. Cost and yields are moving in a positive gap. So you can see that in Slide #17 and 18, other operating expense are concerned. So they have come down this quarter, if you look at it year-on-year also because of the restrictions on the travel and tighter control on the expenses, and we are seeing what needs to be done, what will not be done with so much of homework. So we are able to bring down the expenses and no planned expenses during the remaining year also. Coming to staff expenses, they are 4% lower than last year. So [indiscernible] is concerned, right from the beginning, bank has been seeing a half payment every month. So that way that burden will not be here. If at all, the [ bipartite ] is settled and the difference what all is there, that only needs to be taken care of, but also, we have already made some provision. It will not take a big hit on the P&L. Now other developments when we see, this has really helped us to have a fairly stable operating profit and which has given us also a sufficient headroom for the provisioning. So now coming to other issues. CCR, GNPA and NPA, all these have helped us because we are comfortable. We have front-loaded a part of the provision of the next quarter also during this quarter. So that is the reason the ratios, you can see, are quite comfortable. And so 7.99, 2.99 all of you can see that year-on-year as well as quarter-on-quarter. All numbers, as you see, there is a improvement. Liabilities, if you come back to liability, liability contest is concerned, we have focused much on the CASA. At one point, bank used to be at 28% CASA. Slowly, it has moved to 34% and this year, both this -- particularly this financial year, both current accounts as well as savings spend, both grew well. And now the CASA of the bank is around 34%. We will continue this trend, and we'll focus on this. And as we account, we were looking at a number of accounts, current account and savings bank. The pre-COVID last September, the number of accounts, how many we were opening, more or less the same numbers we have reached in September '20 also, so which implies that normalcy is slowly restoring and people are coming back for opening a rest of the transactions. Our focus was more on granularization of the time deposit portfolio. So below INR 2 crore portfolio, you would have seen that there is a growth of 2%, whereas about INR 2 crores is 28% degrowth is good during the year, during the financial year, not y-on-y or year-on-year. So YTD, if you look at it, so that's what we thought even if there is a shock. So bank should be able to absorb the shock easily. We are focusing more on the lower value below INR 2 crores deposits than higher value. There were many requests for offering a higher rate for the bulk deposits. So we are not even considering. So that way, we wanted to maintain granular portfolio and cost of deposits also is at minimum. So retail portfolio, that way, if you look at it, a strong footing is there we have entrenched. And despite these lower rates, the customer loyalty to brand KVB keeps us strong and that has been evidenced both in the CASA as well as savings bank and granular smaller time deposits. So we'll continue our efforts. And as I said, the traction will continue for the rest of the year too. Coming to the treasury operations, specially significant contributor. So for the profitability of the bank during last few quarters. So this trend may or may not continue because the interest rate regime more or less have become flat now and all, they may not find a lower interest rate regime than this now. So -- but whatever it is, other things will start gearing up now. The income will come back because the processing, other ATM charges, all these things have come up. So we will overall work to maintain the operating profit. So even if there is a dip in the treasury income. This quarter, if you look at the investment income, treasury, it's INR 120 crores. But overall, if you look at it, during the year, the treasury income will be more this last year. Coming to the capital adequacy ratio, it still remains pretty high at [ 18.41 ]. And out of that, [ 38 ] itself is above [ 16% ], so it is much, much higher than the mandatory requirements. LCR also if you look at it remains higher than the prescribed, showing the inherent strength of the bank. So I don't think any further [indiscernible] is required on this balance sheet [ front ]. So that -- anyhow when we discussed with 100% and all we'll respond. Let us come to the credit portfolio. So let me go straight to each of the BUs. If you look at our numbers, the jewel loan portfolio has crossed [ INR 11,000 crores ] a new high. And we have shown also the graph how we grew, where we started INR 1,000 crores, where we are at INR 11,000 crores, all these have been shown now. The digital initiatives, which we have started clearly for the jewel loan and others are bearing fruit and [indiscernible] is helping us too, service too, more number of customers and clients. So the journey for the jewel loan will continue because the demand is there. So we are pretty conservative as far as the LTV is concerned. so more or less, it is below 75, that way, we are maintaining sufficient cushion for listing sendoff. And now coming to emergency credit line. Already, we have disbursed INR 1,600 crores, so 62% of our customers have availed it. If we look at the rest of the 38%, the demand will be muted because each of the customers have approached and 38% are more or less comfortable. They don't want it. But as comfort to us also because these people they are self-sufficient, so they can manage there? Sure. So if you look at the emergency trade INR 1,600 crore also, so it may not reflect directly in the business growth, because the interest arbitrate is only at 8.2%. Many of them have availed to reduce their interest cost. The normal interest cost is more than that. They have taken [indiscernible] outstanding. So this INR 1,600 crores trade, it will not reflect in the numbers what we see in the commercial segment or CIG segment growth. Retail, if you look at it, the log-ins have started and employees are there, particularly in the home loans as well as vehicle loans. So we are confident that clearly the numbers will pick up, but we are careful and we are selective in the selection of the borrowers, and the main primary focus is the ability of the borrower moreover is to service the loan is cash flow because now a lot of uncertainty is there. We are looking at those things. And wherever we are confident, we are actually entertaining those requests. The digital platform on bank has created last 2 years back, so using the surrogate data for validating these data given by the information given by the borrower, that's really helping us to filter these borrowers and the quality of their portfolio will improve that way much better. Coming to the CIG and Commercial segment. CIG is about [ INR 25 crores ]. Commercial loans are below INR 25 crores. These 2 segments, if you look at it, let us continue, but as I said, the [indiscernible] are difficult. Now the uncertainty is there. We are selective in actually taking the exposures. On the other hand, if you look at it, the demand also is weak. So as long as demand is weak, so we don't want to push and create further problems for the bank. So as a very good proposal is there, we would like to move. But really this quarter, we will look at deeply what are the opportunities available for us. So if we had a -- IBPC last year, INR 1,325 crores. And that was mainly for the liquidity deployment measure we have used it last year. So now we could you look at it, the IBPC total lease has been paid off. So nothing is there in the books. The real book what all we have is an absolute organic growth only. If you exclude the IBPC and if you look at the numbers, the year-on-year growth comes to 5%, which is quite decent and reasonable. So though we cannot factor the INR 1,600 crores straight GCA into the credit because, as I said, something has been netted off. So let us come to the main point, what all of you must be anxious to hear, that is moratorium and standstill on account of Supreme Court. That is the elephant in the room. So we have already given a slide there in Page #19, if you look at it. We have shown the collection efficiency there. So there, what we have shown is that book of the term loan book and as well as cash credit, for the moratorium has shown. But the demand out of that book is lower than that. And the percentages that what you have mentioned out of the demand what we have raised, not out of the total book because company is not yet due. So if you look at it, the numbers, overall, they are quite encouraging, that is much, much better than what we estimated. Initially, when we were discussing with the borrowers before the moratorium. We were a bit skeptical saying that whether these numbers we'll be able to reach or not. But whenever actually, we started on September 1, all the people, including the feet on straight, the contact center branches, branches, all of them we were actually following up with a [indiscernible]. The numbers what we have got is pretty good that way, commercial as well as [indiscernible] if you look at it above 91%, [indiscernible] a very small portfolio that is not a big issue. If you look at the retail segment, parcel segment also, so this has come to around 87%. But overall portfolio, if you look at moratorium and nonmoratorium, it is around 95% at process. So that is quite satisfaction that because during October, nonmoratorium also is doing pretty well. So we don't visualize much issues maybe there in this book because people started responding and paying this one. Now interactions are continuing with all the borrowers at all levels. As I said, FITL is concerned, 70% of the customers have opted and majority of them are honoring their commitments also. If you look at the repayment also, majority of the repayment is starting from October down from January. So people did take a holiday repayment holiday for 3 months and [indiscernible]. So that is good for us so that we will be able to know their ability to pay an average [indiscernible], so that is also working well. Now COVID-19, you would have seen, we have started providing from March onwards. March, we have provided something. June, we have provided. And again, INR 100 crores have been provided during this quarter also, which comes to overall INR 220 crores. So this will take care of the NPAs which are going to come up because maybe on account of Supreme Court dispensation subject of [indiscernible]. So that even if that becomes another INR 5 crores that we have to provide, and even if we had to do some restructuring from slippages, maybe there on account of COVID, all these things keep in mind, this INR 220 crores profusely we thought that literally we had to provide and we have kept it for a rainy day. So as it is, we have not touched that amount, and we will see how it pans out because we don't have a trend line as far as the quarter and next quarter is concerned. So compare saying that where we will be in this quarter. So it unfolds, we need to see. But the first continuously to track and monitor will continue from our side. Coming to the restructuring part, if you look at it. The demand in there is quite tepid. So we have approached many of the borrowers who have some sort of stress if we see something like that. But we are very clear in our understanding. Those who are affected by the COVID only, we will consider suppose even if we consider the cash flows will not be there to support, and we are just postponing the problem. We have told all our operating teams not to entertain that. Intention is not to post for the problem. Recognize the problem now, extend a helping hand, if we are able to get them back into normalcy, it is our duty, we will support. So that way, we are educating the borrowers also [indiscernible] pros and cons of the restructuring. Incidentally, what happened to the retail segment borrowers, though initially, they have opted for the restructuring, when they knew saying that they need to pay interest, the moratorium, later they had to pay. So they are good to grow and they have said that we will arrange for the funds and now we pay Otherwise, there is a misunderstanding amongst where the borrowers saying that they'll be very where all these things are not. So when it's clarified, so the demand is tepid. But whatever it is, we'll keep our fingers crossed. We will see how it works during this quarter because after December end, people can give their request. So we will see that. But initial discussions with the borrowers as well as our operating teams. If you look at it, we see the restructuring book maybe around 2.5% of the book extended. So we'll be able to do that. But if something comes up and crops up suddenly, we will not be able to say -- as I said earlier, there is no trend line for this. These are [indiscernible] estimates what we had from the feedback received from our own teams. Now, Supreme Court directive LPA addition, what all comes, as I said, that also was taken care of and that will not have much -- no impact in the December quarter because already we have taken care of that one. Now that moratorium has come to an end, we are not looking at moratorium, nonmoratorium these things, because everything rupee, rupee whatever you do need to recover. So that only we are proceeding. That is the reason we thought that letter, sell out what are the numbers in the presentation itself. As I said, overall book is much, much better than what we have shown here. So the NPA numbers are low during the quarter. And we continue our [ factories ] of providing higher than what allis required mandatory, so that the balance sheet becomes more comfortable and stronger. So business growth is concerned. So we foresee a pickup happening gradually because the capacity utilization and a few other industries when we look at it, it has come to [ INR 60,000 crores to INR 75,000 crores ]. And once the question is expansion, these things come up, once people cross the 100% of utilization or 90%, 80%, something like that. So the stage has not yet come, the capacity some people need to utilize. But we are in the market looking at all opportunity. Every good opportunity, we will try to earn cash. We have the trade appetite. Digital platform is in place, and liquidity is there with us and people are geared up now looking into the market in all these segments, so both under agriculture, retail, commercial as well as corporate. All segments we are looking for opportunities. Anything coming up, we will do that. So that's how we are considering. So this is broadly from my side. And everyone, if there are questions are there from any one of you, where we will take it and all. And the presentation is already there with you, and we will respond to their queries. Thank you. Thank you, Abhinesh.

[Operator]

[Operator Instructions] The first question is from the line of Rakesh Kumar from Systematic Shares.

[Rakesh Kumar, Research Analyst]

Sir, can you hear me?

[Ramesh Babu Boddu, MD, CEO & Director]

Absolutely, we are able to hear you.

[Rakesh Kumar, Research Analyst]

Okay. So the first question, also you mentioned in your opening remarks, the FITL number is as a proportion looking pretty high. So what is the current behavior of the customers and how you're approaching the situation? First question. Second question was with respect to the gold loan. Gold loan as a proportion has become pretty high now more than 20%. And what is the outer limit of that competition we have in mind internally? Yes. So there's 2 questions I have.

[Ramesh Babu Boddu, MD, CEO & Director]

Yes. First question is regarding FITL. So we need to see whether people actually need or don't require. Now what happens when this provision is there, a few of them they have used it for the sake of using because they do not know what is the future, how it pans out. So there's a reason when option is there, they have used. And as I said, interest arbitrage also is there. So [indiscernible] no interest arbitrage. They have used it for keeping a buffer for the future. So if you look at the recovery, if you look at it, more or less, the recovery majority is coming up even in the cases where FITL has been granted. So that way we can find much stress in those accounts. Okay. Coming to the jewel loan is concerned. Jewel loan, RBI has given a dispensation of 90% for that personal segment. So still, we are very conservative, and we have not crossed overall, if you get look at, including the agriculture segment as well as the retail segment of the jewel loan. Our LTV is below 75%. So that way, even if you had to go for a margin call, 25% margin is quite sufficient to take care of these risks because if we are at 80% to 90%, then we may get [indiscernible]. So that's why we are continuously looking at what are the positions every day we see the rate and we monitor and based on that how we need to go ahead, we are looking at it. Another great advantage, I'll tell you. So suppose 2 loans are there more than 1 year or 1.5 years. These cases when the rates were low, actually, gold rate was low, you finance them. The value of the gold has gone up. So that is the reason here, the LTV is under control because the gold rates have gone up. So we feel that as it is, we should -- we do not have much issues and risks as far as the portfolio is concerned. Now coming to the risk appetite for this and on. So we are working on this actually. 21% is quite okay. So but we will look at it how we modify the position and all. So our risk with our risk management department, we are also working on that last week itself, we thought that. So we will finalize some numbers. We'll go to the Board and then we'll affix some number there. If we look at the FITL loss efficiency, if you look at it also, collection efficiency for September, if you look at the commercial and corporate, which includes FITL customers, commercial is 98% and corporate is 91%. So if you look at the numbers of the corporate also for the restructuring those who are wanting, not even 2-digit number has come. All of them are below 10 only and no money requests have come from corporate also for restructuring. So that way, if you look at the portfolio of the corporate, where it has already cleaned up, it is -- we are feeling the sense of that, and the restructuring demands are there minimum based.

[Operator]

The next question is from the line of Amit Kumar Premchandani from UTI Mutual Fund.

[Amit Kumar Premchandani]

Sir, if you can [indiscernible] your loan portfolio, where exactly how much of gold loan is sitting in the various subsegments that you classify? Is it a working capital loan or a term loan? Is it a bullet payment structure? Or is it a EMI structure? And what is the average duration of the loan book? And what is the risk weight of the loan book.

[Ramesh Babu Boddu, MD, CEO & Director]

No, that's at a granular work. We'll have to advise it separately. But if you look at the overall jewel loan book, if you look at it, so INR 11,000 crores, if you look at a major portion is from the [indiscernible] segment, once it is coming. And a small portion it comes to, how much INR 2,000 crores? I think INR 1,000 crores, INR 2,000 crores something like. [Indiscernible] of the portfolio is from agriculture. And the rest is on the retail segment. Retail segment off late last 1 year, only the focus is there. Otherwise, majority is coming from the agriculture segment only. That sort of granular work [ water ] is there. So we have not yet worked on those lines and all because overall, we are monitoring based on the LTV. If LTV is there, we are going for a margin call and we are not allowing them. And when we go with the auctions, also auctions are happening pretty well, as you [Audio Gap] Tami Nadu, Andhra Pradesh and Telangana.The gold loan portfolio also majorities in these 3 states only. Other than these core areas, our golden portfolio is minimal. So that way this problem of having a proper control on the portfolio is low. So we are mainly focusing on the LTV and how we are going to do the pricing which -- at which the program rate we are going to do it and on that's where we are focusing.

[Unknown Executive]

Yes. Amit, in addition to our MDs -- the guidance on this the loan portfolio, as the indicator predominantly, it's basically agriculture. And again, it's not bullet payment. There's no monthly payment type of thing. It's completely gold loan payment, because they are [indiscernible] finance. So basically, it is assessed based on the scale of financing So that is why most of the loans are given as a bullet payments.

[Amit Kumar Premchandani]

Even interest is paid at the end of the term?

[Unknown Executive]

Yes, correct. Correct. Correct.

[Amit Kumar Premchandani]

And sir, what is the average interest rates, average lending rates for the gold loan portfolio and the average risk weight?

[Ramesh Babu Boddu, MD, CEO & Director]

Its aggregator is 8.5, so the risk weight is 0, because the risk weight is 0, capital also is 0 there. And coming to the personal segment retail segment is concerned, it is between 9% to 9.5%. It ranges that way. So these are the 2 segments where we have a golden portfolio.

[Amit Kumar Premchandani]

So that is market driven given that the lending needs are much lower than the average yield for you?

[Ramesh Babu Boddu, MD, CEO & Director]

No, no, it's like that we need to see. Suppose if this amount, let us say, if you need to invest somewhere else, when the credit growth and demand is tepid and the good opportunities are not coming, this amount, you have to invest at 3.35%, something like that in the reverse books. And if you're getting at 8.55% straight on that amount is getting, so it's straight adding to the bottom line. So we need to see the opportunity cost and opportunity gain in this. So there's a better way, one suppose other opportunities come, we are able to finance a 10%, 10.5% or not. Then definitely, we can reduce here. It is a question where any time you want to reduce the portfolio, you can reduce it. So people come in today, you can tell them saying that my rate is this only paragraph. If others' rate is much better then the people go out, right? [Indiscernible] higher for us, [ they'll move ]. So this is an area where there is no commitment. Whatever we have given, that will be true and on [indiscernible], it will be paid. So further just [indiscernible] the opportunity, what all we have. So we will be going. Once the market improves demand is there, we may shift again.

[Amit Kumar Premchandani]

And what -- how do you classify your loan as an equity loan or retail loan? Why these gold loans are agreed on? What is the basis of classification?

[Ramesh Babu Boddu, MD, CEO & Director]

See, basically, this loan portfolio is predominantly in the rural, [indiscernible] rural and [indiscernible] places. In the metro, we don't do any agricultural jewel loans. And this is basically financed for the agriculture base for the farming activities. And the assessment is done based on the land holding, either leasehold or our own alliance. And there is a very specific guidelines given by the local lead bank about the scale of finance. So based on that, this assessment is done, only for security, we are taking the [indiscernible] for the purpose. And again, I see predominantly the areas that we are working at is [indiscernible] and rural places. Our main competitors are public sector banks. So public sector banks, the lending rates are doing at less than 8%. So that is because of our efficiency and turnaround time, we are able to get the subsidiaries a reasonable growth in this segment.

[Amit Kumar Premchandani]

Just a question on the cost-to-asset ratio, if you look at over a 10-year period Karur Vysya Bank cost to asset has steadily moved up while top line have been broadly flattish. So what are you doing to ensure that the cost to asset moves down now given that, that has been a key contributor to ROE decline?

[Ramesh Babu Boddu, MD, CEO & Director]

Yes. I tell you. Now what happens, there are other segments like commercial, which provides better yield to us that is below INR 25 crores. So this is an area where we have a better pricing power is there. So we are trying to grow there. So what all gaps are there, we are fixing that. And we -- which are the products where actually we can push that market. These things we have worked out now. And once the position improves, we want to grow more on the commercial, where the yields are better. So that is one part. Second thing, regarding the gold loans also, what we are planning, the retail segment offers a better opportunity with a higher [indiscernible]. So we are working on these models. So to shift the same gold loan portfolio, a part of that into the retail segment, where the yields will be better. So if you look at it that way, overall, the yields will improve and all these ratios will improve.

[Amit Kumar Premchandani]

And sir, any clarity on ESOP for the top management?

[Ramesh Babu Boddu, MD, CEO & Director]

Yes. ESOP is considered last time in June also, the question was asked. I'll be clear. As far as the MDs remuneration is concerned, already the NRC as well as Board, they have recommended to Reserve Bank of India, 2 components: fixer component as well as variable component. Variable component has a huge amount of ESOP also there. So Reserve Bank of India has cleared the sister component and where the component is concerned, they said that not only for our bank, all other banks, they said that a call will be taken, they'll be giving it. So that way, from the Board side, nothing is there actually what has to be done, everything has been done. And now, it's with RBI, not only for our bank, all of the private sector banks also, they will be clearing in due course. That is regarding for the MDs. And the second is concerned as it is we have 2 ESOP skills are there already. Earlier, where we have been giving it and all, so now we will think we will have to formalize something and now we'll go back to the Board or the top management, what we need to do. So we are mulling on a better idea. So we are working on that. So once we have some sort of thoughts on that, we'll go back to the Board on that.

[Amit Kumar Premchandani]

And sir, finally, if I may ask, any guidance on the provision front for this year and next year?

[Ramesh Babu Boddu, MD, CEO & Director]

Okay, provision front, if you see, okay, if you ask me agree, but the question is how much of unknown unknown is there, sir, is known to you and me also. So what we have estimated, you see [ INR 230 crores ] also, if you look at it. So we don't have any basis actually for the [ INR 230 crores ] totally also. But whatever it is a worst-case scenario we are thinking and all we have provided for that. So then how would this real quarter unfold is not known, because after last quarter is concerned, either moratorium was continuing, our Supreme Court directive was continuing. Now today, let us assume the Supreme Court generation [indiscernible] the issue is over today, so then we'll be all going. But even if Supreme Court directive that clears also how much would become NPA also that also we have provided, how people will be able to manage their cash flows, how they will be able to sustain, survive economies opening up and what sort of issues will come up, all these are not known. So -- but whatever it is, what we thought is we'll stick to the earlier guidance what we were giving that our slippage may be up to 1.75% of this year is provided. The current trend continues and nothing much unfolds, sir. So the feedback, what we get from the -- our teams as well as the current accounts, if you see, so we are not finding much more than this. But as I said, the rider is how we unfold this quarter, next quarter, we need to see, but we'll be more cautious to have a closer tap on this front.

[Operator]

[Operator Instructions] The next question is from the line of Pranav Tendolkar from Rare Enterprises.

[Pranav Tendolkar, Investment Analyst]

Sir, I have some questions regarding the asset conviction. First of all, during the moratorium until now, what is the percent of loans that have not paid a single KMI and have paid just one payment? Can you elaborate that?

[Ramesh Babu Boddu, MD, CEO & Director]

What I was telling initially. After the 31st August is concerned, we stopped looking at the moratorium, because everything we need every time we need to record moratorium or nonmoratorium. So our focus is all on all these accounts in usually. That is the reason if you look at the moratorium portfolio, even if you look at it also, so 91% of CPGs, CIG, 92% has come. PPG also, we are on the job, because initially, a few of them, they thought that they will go for a restructuring. The moment when they knew saying that this restructuring has its issues and just burden and all. So they are working and they are going to get some amount. So until and unless 1 or 2 months, we don't give time and we get the money. So we've not have a clarity about the restructuring as well as these things also. So that is, we are not separately focusing on the moratorium book, how it is behaved and all these are out. So we are focusing on every account now.

[Pranav Tendolkar, Investment Analyst]

Right, right, sir. But you would have data about how much of loans have not paid a single installment [indiscernible]? And what installment?

[Unknown Executive]

No, Pranav. I think how the accounting system works is as and when the moratorium announced by the regulator, the system stops demanding the installment from these accounts. So whatever amount paid by the customer is without the advanced payment with the interest to benefit. So we're not exactly bifurcated 1, 2, 3 like that, but there are many cases where they trade a completely advanced amount also. No, that's they're unable to bifurcate into 1, 2, 3 buckets like that.

[Ramesh Babu Boddu, MD, CEO & Director]

But not only that Pranav, but understand of course, we have not put an installment rate issue but is eligible for the restructuring now. So we go for that, so we cannot straightaway come to a conclusion saying that there is a stress in this. So we may be self-employed. So we're getting a job in the some set of employment in the next 2 to 3 months. These provisions, we may have to give some sort of leeway. And so we'll see this 1 or 2 months how it works out and all.

[Pranav Tendolkar, Investment Analyst]

Okay. The second question is what is the amount that has not been maintained because of that you always put in a decision that [indiscernible].

[Operator]

[Operator Instructions]

[Ramesh Babu Boddu, MD, CEO & Director]

Yes, if you look at it, the Supreme Court directive is not there, INR 32 crores would have become NPA. And we have made a provision for that also already in the INR 230 crores what we have discussed.

[Pranav Tendolkar, Investment Analyst]

So from this INR 32 crores, how much is the provision that [indiscernible]?

[Ramesh Babu Boddu, MD, CEO & Director]

INR 5 crores, we have made a provision for that.

[Pranav Tendolkar, Investment Analyst]

INR 5 crores?

[Ramesh Babu Boddu, MD, CEO & Director]

Yes, yes. INR 5 crores.

[Pranav Tendolkar, Investment Analyst]

Okay. So in terms of total agents that are outstanding, which are not calculated in MMPA, can you please speak about [indiscernible] how much is integrated and how much the general provision? Can you give us [indiscernible]?

[Ramesh Babu Boddu, MD, CEO & Director]

Your line is breaking. That's why we are unable to hear clearly the question.

[Pranav Tendolkar, Investment Analyst]

Yes. Sir, if we see the provisions which are not included in [indiscernible], can you give -- speak of how much is COVID related? How much is above what is [ 5% ] for 2 months?

[Ramesh Babu Boddu, MD, CEO & Director]

So you're talking about the INR 220 crores what we have provided?

[Pranav Tendolkar, Investment Analyst]

Yes, yes.

[Ramesh Babu Boddu, MD, CEO & Director]

INR 220 crores is concerned, I'll just tell you. Let us assume INR 5 crores will go for this -- what all the Supreme Court dispensation comes that way, okay? Another [ INR 205 crores ] will be there. So [ INR 215 crores ] will be there. So worst-case scenario, when we are assuming ideally, the restructuring, we are assuming around 2% or at the most 2.5%. So even if the 2.5% comes also, it comes to INR 1,250 crores and INR 125 crores may have to be provided in the 10% of that. So INR 125 crores plus INR 5 crores, if you take out further Supreme Court, INR 1,130 crores. So even then if you look at it INR 90 crores we have provided, for this, there is no reason. Actually, because what we thought is as we do not know how it is going to unfold, so as a measure of abundant prudent measure we have provided and not keeping in mind this better account may slip on account of that. So there is no one-to-one tad there and all. It is just a buffer we have created for the unknown circumstances as simple as that. Even with 2.5 also what I said, it may not go up to that point also we do not know. So that's why, and I think other than the INR 5 crores, what I said for the INR 32 crore, rest entire thing is free, either for the restructuring or for any slippages on account of COVID, which may come up.

[Unknown Executive]

Now in addition to that, the entire INR 220 crores is not countered for raising the net NPA, getting whatever we disclosed. This INR 220 crores is not taken into account.

[Pranav Tendolkar, Investment Analyst]

[ So what I'm asking is that I had it, any percent could be providing us? What is the 10% amount so that other extra? That is so helpful. ]

[Unknown Executive]

So that 10% fee during the month of the March quarter, June quarter and what about the moratorium and the working capital limits, RBI has given its guidelines. But as of now, there is no 10% guideline is involved. So whatever the INR 220 crores provision other than the INR 5 crores whatever MD has advised, this is all buffer we have created, either it can be adjusted for restructuring. Or -- if we are not consuming at the end of the year, it can be write-back also.

[Operator]

The next question is from the line of Renish Bhuva from ICICI Securities.

[Renish Bhuva, Assistant Vice President]

Just a question on the section part. Can that [indiscernible] portfolio basis is 95% or [ help I talked about the collateral ]?

[Ramesh Babu Boddu, MD, CEO & Director]

I talked about the collateral.

[Renish Bhuva, Assistant Vice President]

[indiscernible] collection.

[Ramesh Babu Boddu, MD, CEO & Director]

Collection, collection. No, no sorry. It was breaking that way. Collection overall, overall portfolio, if you look at it, comes to more or less around [ 95% ], correct. Because I tell you, just one point because Renish, maybe for others also, you may require this one.If you look at the Slide #19, I think for 19, Slide #19, if you look at it, so for the benefit of all of us also, I'm just sharing, the moratorium book 18,000 has been clicked into 2 parts: working capital book of [ 8,748 ] and term loan book of [ 9,886 ]. But if you look at the term loan book, the total demand is not 9,886. So it is [ INR 1,645 crores ] only because September demand, it varied from the [indiscernible]. So out of that, if you look at it, the percentage is what we have given finally holds good. If we add the non-moratorium also [indiscernible] it is around 95% it comes to.

[Renish Bhuva, Assistant Vice President]

Right. So sir, [indiscernible]...

[Ramesh Babu Boddu, MD, CEO & Director]

One more thing for the comfort of all the analysts I want to share. In respect of CBG, which is below INR 25 crores and CIG, which is about INR 25 crores, non-moratorium book, the demand raise 100% have been recovered September demand. 100% of that. Personal Banking also retail, if we look at it nonmoratorium book, 99% has been received.

[Renish Bhuva, Assistant Vice President]

Got it. Got it. Yes. Actually, I got my follow up. Thank you for clarifying that. Yes, the second question is on the [indiscernible] front. So you have already tested that in an opening remarks, that our CASA ratio has been moved from 20 to 34. And that actually shows the customer loyalty to the TV brand. So for whatever the incremental customer addition we had done it over the last couple of years. So what is the cost strategy? And what will be the product for the [indiscernible] customer existing today?

[Ramesh Babu Boddu, MD, CEO & Director]

Yes. It's a good question actually. You see product per customer is below 1.5, below 2 only, okay? So we have worked on that now. We are looking at it. We took out each customer wise, what are the products they have. And so through a more than modified the revised CRM we are procuring now. So through that, we want to aggressively go for that. And products are concerned, alliances and arrangements are there with the insurance companies, both general insurance as well as life insurance and mutual funds. So now we need to take it forward. So this product per customer, how we need to take it forward and how we need to cross-sell. This is what we are working on that. And we had the discussions with the software package providers are also digital platform providers. And most probably by the end of December, we will be having the CRM in place a modified version. So before that, based on our earlier system, what all is there, we will be pursuing it. And now once we get the CRM, we'll be in a better position to push all these things better. But one thing we need to see the focus currently, we couldn't say much during this period on the cross-sell because mobility is restricted and cost of it concerned, so one-to-one support [indiscernible], the ability to market that will be much, much better and all. So people were much focused on the monitoring, follow up or seeing that these accounts are serviced. The focus and energies are in this. So once October, November, once we have some sort of clarity, the manpower as well as energy we'll be able to slowly shift towards other side, our only [indiscernible] is 1 point. We had problems in the corporate last year, and all of them we have overcome now. And on account of COVID, we should not be caught again on the wrong side. That is the reason our energies we are putting on follow-up and maintaining the portfolio, so if you are able to do this lesser provisioning and more profit, this is what we are working. But simultaneously, as you said, cross-selling is a major area, which has occupied our attention, and we are working on that.

[Operator]

The next question is from the line of Jai Mundhra from B&K Securities.

[Jai Mundhra, Research Analyst]

The Slide 19, sir. And before that, you mentioned that the nonmoratorium demand resolution is [indiscernible ]...

[Ramesh Babu Boddu, MD, CEO & Director]

Jai, we got disconnect. Can you start from the beginning?

[Jai Mundhra, Research Analyst]

Sure thing, sir. And you -- so this is about Slide 19. So this is moratorium book. Nonmoratorium book, I think you mentioned that there is a 100% demand resolution, right?

[Unknown Executive]

Total 100% industrial commercial as well as corporate. For the September demand, what we have raised in respect of personal segment, it is [ above 9%] .

[Jai Mundhra, Research Analyst]

Right. So does this mean that there is no overdue in non-moratorium commercial and corporate book?

[Ramesh Babu Boddu, MD, CEO & Director]

Correct. You are right.

[Jai Mundhra, Research Analyst]

Or this is -- so this 100% is not one-time collection, right? This is the -- all people are paid the money, but they may have said with a lag or they are paid in time. I mean there's no overdue, right? Is that what you mean?

[Unknown Executive]

So you're right, Jai. Actually, we have mentioned the quota share as of 29th October. Probably somebody -- most of them they are paid on time. And somebody said with some delay. But we are seeing the position where we want to give you letters of position. We have taken the 29th October position. As of 29th October, 100% of the demand is serviced by the corporate and commercial bank customers.

[Ramesh Babu Boddu, MD, CEO & Director]

Jai, I just want to add one point here, because as we know, the customer's success is something different. So rather than the lag of 10, 15 days, we need to look at the intent, whether the intent is there for him or not. If you look at the intent is concerned, 100% when they have paid, they are serious about their obligation.

[Jai Mundhra, Research Analyst]

Right. Okay, sir. And then the -- with continuation to that now on moratorium book, how do you define collection efficiency for working capital FITL? I mean those who have the outstanding is greater than or equal to the limit? Is that how you define or they would have to necessarily pay something for working capital and FITL?

[Ramesh Babu Boddu, MD, CEO & Director]

The slide which we have presented here, it talks about out of the overall working capital book, how many customers, how our [ AMD ] FITL. So the loan book is mentioned there. So wherever the FITLs are granted on the particular book, that is what we have studied. Of that particular book, if you see 98% in commercial and 91% the corporate, they're all subleased to the FITL loans.

[Jai Mundhra, Research Analyst]

Right. And which is what they have to do, right, in a way because FITL, they have to pay interest or [indiscernible]?

[Unknown Executive]

No, no, they can pay principal plus interest. In the majority of the cases it's the principal. And in some cases, it's only interest. Because what we have done, we have given 2 structure, only the 6 monthly installment they can do or they can pay up to 3 months holiday and there's actually 3 months they can pay. Majority of the customer they choose the 6 monthly year [indiscernible], where we collected principal as well as interest.

[Jai Mundhra, Research Analyst]

Right. Sir. Okay. And the second question is, sir, on BSE disclosure. Now BSE disclosure notes to account 6, wherein we have mentioned where standard moratorium/overdue position. And if you look at the note there, we are written [ INR 4.460 crores ] is asset class [indiscernible]. And this also includes SMA 0. So I'm a bit confused as to what this INR 462 crores, where asset class [indiscernible] benefit has been extended.

[Ramesh Babu Boddu, MD, CEO & Director]

Yes, please.

[Unknown Executive]

Yes, Mr. Jai, it is like this. It was the mandatory disclosure which was required as per RBI guidelines, so we find that each bank was interpreting the requirement in their own manner. So ultimately, after a lot of back and forth discussion with our auditors, what we decided was the benefit which was extended as per RBI circular, which we had disclosed or which was a portion as of June 30 was roughly INR 900 crores. Out of the INR 900 crores, the accounts were current still under that category as of 31st August, the outstanding balance as of 30th September is given under SMA 0, 1 and 2 because theoretically, these are the people who have taken the benefit. According to standard actually doesn't require any benefit. So the [ INR 462 crores ] depends that portion of the people who are in the same category out of the total outstanding of INR 900 crores as of June 30. Or if I put it another way, the SME customer was in 0 and 1, unlikely to become NPA forms a major sector of the portfolio and the SMA-2 portfolio, out of this INR 462 is around INR 155, This is where we are concentrating on, which our Chairman or our MD was talking about collections.

[Jai Mundhra, Research Analyst]

So I understood SME 1 and 2. What I'm asking just as to SME 0, which is less than 13, and the meter has started and end, right? So anyone who was having issue, SME 0, but anyway would have become SMA 1 as of September end.

[Unknown Executive]

Correct. But there are possibilities that during the COVID period also, U.S. operating is a [indiscernible] repaying the instruments. So it is a dynamic figure. Correct. No, nothing burns for you. Take you, yourself, for example, if you had a housing loan, EMI, you may not upgrade all the 6 or 7 emails you might upgrade 3 or 4. Or sometimes I mean, if you are lucky, that we say we take a lottery and you may upgrade it also.

[Operator]

The next question is from the line of Anuj Sharma from M3 Investments.

[Anuj Sharma, Fund Manager]

Mr. Babu, you have been more than 3 months in the bank. I just wanted to know some thoughts on your strategy. So now we have been challenged by COVID. But what are the key areas we have [indiscernible]? What are the key priorities over the next 12 months in terms of strategy? And on -- in terms of procurement results, these are the areas we would [indiscernible] realtime over the next 6 to 9 months?

[Ramesh Babu Boddu, MD, CEO & Director]

Yes. So coming to the strategy, let us divide into 2 parts. One is on the business front. Business side, if you look at it, so when we look at our yields at...

[Operator]

Mr. Sharma and the other participants are requested to please stay connected. The line for the management is disconnected. [Technical Difficulty] Ladies and gentlemen, the line for the management is reconnected. Mr. Sharma, you may proceed with your question.

[Anuj Sharma, Fund Manager]

[indiscernible]

[Ramesh Babu Boddu, MD, CEO & Director]

Sorry, sorry. The line got disconnected. Yes. I split that into 2 parts. One is for the business. Business, if you look at it, again, the business we'll divide into liabilities as well as assets. Liabilities, we want to focus, as I was earlier mentioning on how to mobilize more of CASA and to granularize the time deposit portfolio. So bulk deposits, we want to discourage. So because it will give us some sort of pricing power, you see further [ improval ] of CASA, which used to be 28, 34, as correctly I mentioned that way. So the energies will continue on that, including the feet on street, what are the other modes we are taking people from outside also. So that's what the focus will be on the CASA front. Coming to the asset front, if you look at it, and let us go each vertical wise, sir. Vertical wise, first of all, corporate, if you see. Corporate, we have already taken a call not more than 125 crores per the unit will be there and all. So we will stick to that religiously. And many other accounts existing, which are beyond 125 also, conscious call has been taken to exit and they have reduced their exposure to 125. And hardly less than 10 accounts are there above 125. And majority of them are there -- a lot of comfort is there our government, our state government and government these sort of things are there. So the first objective of bringing the portfolio down to 125 has been accomplished. So now coming to the portfolio bookings. So corporate is concerned, we are very selective looking at it. Around INR 50 crores to INR 75 crores, we are focusing, not every case, taking 125 and all. If you look at the average portfolio also, it's around INR 38 crores is the corporate portfolio average outstanding. So we will grow there selectively, not aggressively there in the corporate. Second thing coming to be commercial segment. Commercial segment, if you look at it, the main pricing power we have in the commercial segment, all of them are below INR 15 crores or INR 25 crores. So we have the presence and in these areas, a lot of opportunities exist there. So that is the reason what we thought many of the branches around 8 and 13 branches we have identified which can actually push the commercial business. So we are activating them and we are providing this sort of training and our guidance and now how they need to go ahead, what sort of opportunities are there. So we will try to market the commercial segment to the extent possible, of course, in a safer way. So safer way I am planning, earlier, everything used to be manual. So last 1, 1.5 years back, bank has migrated into a digital platform. The digital platform is really supporting to get the data from [indiscernible]. So the various information, what the borrower has given, whether it is correct or wrong. So that way safely, we would like to focus more on the commercial segment. If more we grow there when bank used to have strong presence in the commercial segment. So there, the pricing power would be there, the focus would be on the commercial segment. Coming to the retail segment is concerned, a lot of investment has been made digitally for the retail platform for the digital underwriting. So now we'll be able to tell a customer within 15 minutes whether he's eligible for the loan or not and principal traction can be given or not at his doorstep. So we will continue and leverage his portfolio. If you look at the housing loan portfolio also, last 2 years, it has grown by 2,000 crores odd and we want to focus on these portfolios, which are relatively safer, both validated digitally as well as risk security. So we see a lot of scope in the retail segment as well as in the commercial segment. Coming to the agriculture, currently, the focus may be there on the gold loan, we want to diversify that by using the [indiscernible] and taking the support of these people. So we want to grow under regular culture, where we will be relatively safer. So that is what we want to do under agriculture. If you look at the gold lending platform with partnerships, we are entering tie-ups with a few of the players, because they have the benefit of feet on the street on the ground. And we have the model to provide these funds and all, and loyalties are also there. So that way we would like to go for partnerships so that we have better reach there. Like when under the liability front is also, we are in discussions with a few of the business correspondents to our national business correspondent. So to increase our footprint in rural and semiurban area, where we can [indiscernible] more of this savings bank deposits. So that will add further to our retail liability franchise. So in addition to that, all of you know that we have started 2 more initiatives, that is in the pressure departments, where the goal will be given in the form of a loan. And so these things also is doing well and all February started. But because of the pandemic, we started going slow on that. We will revise that the demand is coming back once again, particularly from jewelers and all. So we will look at that progressively. We will improve that portfolio also. The another focus we want to give is under NEO. That is a nonbranch channel. So here, where we have a lot of scope. Everywhere we cannot have our own branches. This non-branch channel, we have taken literally a lot of feet on street you see it and see the products we have identified. So if you look at the stress there also digitally with our booking, which is much, much lower and the yields are also good. So we want to focus on NEO. All these things will support us in the assets front. Now coming to HR front, what you are mentioning. The average age of our staff is around 35. So that way, if you look at it, these people, they can be encouraged, so we want to go for a mass communication program also, and we will discuss on that. And the training these people, whatever the training gaps are there, and lot of encouragement also we are providing through reward structure also. And in fact, many days, every day, I was talking to 5 branch managers every day. So to know from the ground what is happening, and they were also pretty happy we have chosen branch managers who are doing pretty well. We are internally prepared a matrix also for gauging the performance of the branch at various levels, business will [indiscernible]. So this will show them the mirror how they need to perform and all. We are creating some sort of competitive spirit amongst the people to function and to increase the market share. So that way, HR front also many measures we are taking to activate these young workforce, whoever are there. So that's where we feel that overall, we'll be able to do something well in the liabilities as well as asset franchise. And we have extensively discussed on the monitoring stress these portfolios, what are the efforts already we have told. So that way we are working totally on all these fronts to take the brand to the next level.

[Operator]

We move to the next question from the line of [ Darsty Shah ] from Investec.

[Unknown Analyst]

Sir, I had 2 questions. One with regarding Slide 19. Sir, when you say that the collection efficiency is 99% in the loan [indiscernible] book. But I see conflict [indiscernible] and commercial banking payments? Or does that mean that the morat book has very low production efficiency of 50, 70 in both these segments, because I know when I look at 99% and the average, is this 91% for corporate? And then what is the slippage guidance for that book? Could you just throw some light on that?

[Ramesh Babu Boddu, MD, CEO & Director]

So ma'am, in fact, as I was telling earlier, so we are not distinguishing between a morat book and non-morat book. Everything is running the same, we are following up. But for the sake of -- because the analysts will be curious to know what the of -- what [indiscernible] in respect of morat book, we have split that. If you look this year also, the corporate, the demand, whatever is supposed to raise, when we have raised it, 92% has already been honored. Likewise, commercial segment also, if you look at it, 91% has been honored. When the agriculture front is there, INR 83 crores is the demand raise and 57 had already been paid. The difference comes to around INR 20 crores, INR 25 crores, something like that. So consumer segment, the part banking is concerned, the demand rate is [ 6 47 ]. Out of that [ INR 3,179 crores ] has already been honored. So that way, the 60%, all these things will not come up. If you look at the numbers, we will grow further and it will improve and the support for any reason someone is unable to pay, that offer of restructuring is already there. They are also, as I said, we'll be quite selective if on account of pandemic, if they are struggling, and we have a fair view of there getting the cash flows back, then only we will do the restructuring. Otherwise, we will bite the bullet. But these things will have a clarity only by the end of December, because people have an option to opt for a restructuring up to the end of December. So at this stage, so how much would be going for restructuring stress and all, we will not be able to do. We will continue our efforts in respect of the gaps, what [indiscernible] commercial, corporate and consumer.

[Unknown Analyst]

So if I may add is that in corporate, if 91% has paid and the 9% is not paid, there are how many accounts in that 9%? And what is the average ticket size? And what do we personally think of those accounts, whether they slip or these accounts can be revised or restructured.

[Ramesh Babu Boddu, MD, CEO & Director]

No, that's what I was just telling. Intention is to revive them because on account of COVID, if someone has got a problem...

[Unknown Analyst]

Sir, sorry to interrupt, which are the sectors in which the 9% accounts are? In specialty or corporate?

[Ramesh Babu Boddu, MD, CEO & Director]

I tell you the sector in general, if you look at it, where comes sort of request for the restructuring also are there. It is on account of hospitality, either commercial real estate, where some sort of mall listings are there, German jewelry is and suppose in addition to that, very few on to accounts here and there in textiles. And these are the factors, actually, we found some sort of requests are there. So these cases, any are eligible for restructuring, and there's a real pain in the economy. Everyone knows that. So that's why we look at these things. Otherwise, these are the 4, 5 sectors where we found the requests have come forward and some sort of strength we are able to find. And which is genuine also because other COVID the sectors have really struggled.

[Unknown Analyst]

Understood, sir. So and my second question is, when we say that here, the bank has already been focusing on digital for the last 1.5 years. In future, we want to accelerate that digital focus [indiscernible]. Sir, what is the OpEx outlook for this? What are we thinking in terms of investments which will go when we convert the bank completely visibly and partner with the fintech?

[Ramesh Babu Boddu, MD, CEO & Director]

As you rightly indicated, the bank has been investing in digitizing the lending system and as well as on the liability side. But for the past 2 years, we have been doing it. And most of the investment has already been done. And what is required is only recurring cost, because we are tied up with the 14 external vendors committed to APIs, each and every transaction, if it flows. So there will be a [indiscernible] cost. Otherwise, all our reinvestments, particularly, the application side and hardware side, banks may not have any further additional investments for our road map, which we have drawn for completely digitizing our lending system. And again, if you see for the past 2 years, we are completely entire lending system we brought under the digital. And also the commercial sector, if you started with the small business group, that is up to INR 2 crores. And subsequently, if we expand that to the BUs, business banking units up to INR 15 crores. Now we are in the process of doing the corporate accounts. So this is all not end-to-end digital, but the -- first of all, the validations, the consumer validation and the demographic detail validation, everything will be done through the digital process. And subsequently, the assessment everything will be done through the manual system. On the liability side, the delayed app is one of our focus points, where it's a digital bank for the banker. So every quarter, we have been publishing in the slide, one of the new futures we have added that. Using the delayed app, now any prospective customers can open their account, operate all the transaction, including the opening of a deposit account, so like -- this is going to be the focus point of the bank, where we have -- we created a road map and we have been [ acting ] every quarter. So as said, most of the investments have already been done and what are investments are being capitalized and if at all, the depreciation cost and recurring cost will be there as well.

[Operator]

The next question is from the line of Darpin Shah from HDFC Securities.

[Darpin Shah, Equity Analyst]

Again on this collection efficiency piece. So sir, to keep it simple, if you can just tell me in as the number of collection efficiency on the entire book and segment-wise. So for INR 50,000 crores of loan book approved at gross level, if you can help us with the collection efficiency for September and October and then for [indiscernible] business segment [indiscernible].

[Ramesh Babu Boddu, MD, CEO & Director]

Yes. We'll do one thing. As it is September, we are working on that. In October, we are still -- because the numbers what we have given, moratorium book is 90% as I told you. So nonmoratorium book segment-wise also I have told. So we'll combine this one and all we will see all along we have been monitoring separately. So we'll work on that trend, Mr. Darpin, we will share it with you.

[Operator]

The next question is from the line of Renish Bhuva from ICICI Securities.

[Renish Bhuva, Assistant Vice President]

I'm not sure. My questions have been answered, sir.

[Ramesh Babu Boddu, MD, CEO & Director]

Okay. Thank you. Thank you.

[Operator]

Ladies and gentlemen, due to time constraint, that was the last question. On behalf of Spark Capital Advisors, that concludes this conference. Thank you all for joining us, and you may now disconnect your lines.

[Abhinesh Vijayaraj, VP of Equity Research & Banking Analyst]

Hey, one second. One second. Thanks from my side also to all of them for taking your time.

[Operator]

Thank you.

[Ramesh Babu Boddu, MD, CEO & Director]

Thank you very much. Thanks.